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If you intend to create a company, you must ensure you submit the correct documentation. A company cannot exist until you have created and processed company starting documents. The creation of a new company may also be known as ‘incorporation’ or ‘registration’. This article will focus on the documents you will need to start a private company limited by shares in England. This will enable you to weigh up the work involved in creating a private company and whether you wish to do so yourself or through an adviser, such as a lawyer.
What is Involved in Creating a Private Limited Company?
After deciding upon a suitable name, you must register the new limited company with Companies House.
You can send these documents to Companies House electronically or by post. A fee is payable either way.
What is a Memorandum of Association?
This document must state that the named persons wish to form a company and agree to take at least one share each. These individuals become the first shareholders of the new business. It is, of course, possible for only one person to found a limited liability company and, if so, they would hold all shares in the business (and be the only name within the Memorandum).
A Memorandum of Association tends to be shorter and more straightforward than an Application for Registration. This is because it contains less information and only requires the name of each shareholder, their signatures and the date of authentication.
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What is an Application for Registration?
It is an application form to record information about your proposed new company. The relevant information needed by Companies House includes:
- the proposed company name;
- the company’s registered office address;
- details of capital and initial shareholdings, the proposed officers and initial significant control;
- the type of company;
- (optional) the company’s articles of association; and
- a statement of compliance.
Companies House Receiving Documents
The individual who receives your documents (the registrar) will check that they are in order. If they are satisfied that all documentation meets the relevant legal requirements, they will register those documents on the Companies House system and send you a certificate of incorporation. Companies House will acknowledge the creation of your new company as of the date on this certificate.
An essential piece of information on the certificate is your registered company number. This is a unique number that will last for the life of your company, surviving any future name changes. The registrar will confirm if the application is unsuccessful for a specific reason. For example, another business owner may already use your intended company name. In this case, you would attempt the process again with a new name.
Key Takeaways
The company registration process involves preparing and sending important documents to Companies House. The process is the same whether you aim to create a small business on your own or a more significant business with multiple partners and a hefty partnership agreement. Some of the information obtained through the process, such as the company name and registered company number, should be displayed on your website. Many individuals use a lawyer during the incorporation process and believe this simplifies and expedites the process.
If you need help with documentation to start a company, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
A good company name tends to be relevant to the type of business, easy to spell and memorable. Furthermore, you should avoid existing business names.
Technically, no. However, the requirements for company registration under the Companies Act 2006 can be complex and engaging a lawyer can simplify the process.
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